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Project Overview and Role
Introduction
The DFID Improving Market Systems for Agriculture in Rwanda (IMSAR) programme is a 4 year market systems programme that will help to commercialise agriculture by improving the way agricultural market systems function, making them more effective, participatory (by including poor farmers and other disadvantaged groups), and more competitive. In so doing, it will contribute to increasing the incomes of poor households in targeted agricultural market systems.
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The programme will identify market failures – such as limited access to finance and technology, limited or poor storage, lack of access to inputs such as fertilisers – and develop initiatives to address them. It will strengthen the capacity of farmers and private sector actors to engage with, and benefit from the markets. It will provide both short term and long-term investments into small and medium size agriculture businesses – where possible, partnering with existing specialist financial institutions.
As part of the IMSAR portfolio, IMSAR has been providing support to the National Agricultural Export Board (NAEB) to review and develop the Kigali Wholesale Market for Fresh Produce Market (KWMFP). KWMFP is a 14.4 million USD project aimed to develop and progress Rwanda’s horticultural food system, generate new employment and strengthen access to markets for smallholder farmers. A business refresh has been completed in January 2019, which has updated financials and business plan, identified the transition strategy and developed a way forward for government and donors. This resulted in buy-in by the GoR: NAEB, City of Kigali, PSF, RDB and MINAGRI; and interest by donors: the EU, TMEA, IMSAR, and others to invest in the development of the Kigali Wholesale Market.
Now, that Phase 1 has been completed, NAEB is requesting IMSAR to assist in Phase 2 of the development of the KWM.
Objective
- The design of the market is fit-for-purpose, reflecting the level of thoroughput at the initial stages, as well as over the 15-year projections, as well as incorporating the other interested funding streams that make up the overall business of the Market.
- Input into the governance structure of the market at the inception, and also input into the possible evolution of the governance structure.
- Provide technical input into the design and development of the upstream and downstream investments, such as the best way to develop aggregation systems with farmers that are scattered.
- Input into adjustments into the financial model, based on input from the Steering Committee, to create an operating model that makes sense
Deliverables for Phase 2 for the KWMFP for IMSAR
Input into the process to procure the Market Operator:
- Provide TA to the Steering Committee on the process to obtain the Market Operator, including any input on the TORs, recruitment or procurement process
Input into the design/supervise contract
- Liaise closely with other key stakeholders on the Steering Committee who are responsible for the design and build
- Input into the TOR and procurement for the Build and Supervise Contract.
- During the design process, provide technical assistance on the architectural designs, advising on the best design based on the throughput and evolution of the market.
Provide technical assistance into the business model of the KWMFP, including operations and governance
- Input into key questions by potential investors and donors on the business case and financial model including input into the reworking of any fundraising or investment pitch decks or documents
- Input into a reworking of the business and financial model in conjunction with the input of the Steering Committee. This includes any additional ideas of revenue streams or value addition services that can add to the revenue model of the Wholesale Market. This will also include any operational efficiencies to the model that will affect the bottom line.
- Input into the development of the contract and eventual agreement between KWMFP Governing Board and the Market Operator, including newly identified revenue streams such as transaction income leveraging electronic trading platform and card-based transactions, as well as independent product inspection and grading (refer to Johannesburg Fresh Produce Market model)
- Input into the draft governance documents, addressing ownership, changes in shareholding, decision-making, board composition, voting, committees, etc.
Location Evaluation
- Provide input to the Steering committee on the feasibility of the location of the KWMFP in the SEZ, looking at the size and topography of the proposed site. This will also include developing a list of alternative sites to this.
Transition Strategy
- Input into the transition and relocation strategy, including suggestions on best ways to relocate wholesale operations
Upstream and Downstream Investments
- Provide technical input into the design and development of the upstream investments, such as the best way to develop aggregation systems with farmers that are scattered, third party logistics, or recommendation of an IT system to manage inputs of raw materials as well as get information out to farmers.
- Provide suggestions into downstream investments needed so the market is linked to national, regional as well as international markets.
Reporting
The contractor will report to the IMSAR Team Leader, with support from IMSAR Markets Lead in conjunction with NAEB.
Time and Input
Level of Effort (LoE) to be determined by the contractor. It is envisioned Phase 2 will be completed by end of September 2020.
Requirements
Contractor composition and requirements
- Key contractor experience:
- Market expert has experience setting up and managing wholesale markets, preferably in an emerging market context
- Experience in horticulture supply chains
- Experience in market infrastructure financing
- Experience in emerging and frontier markets, preferably Africa.
- Knowledge or experience of Rwanda would be ideal, although not required.